Electronics Production | October 30, 2008
Atmel rejects unsolicited proposal from Microchip and ON Semi
Atmel's Board of Directors has unanimously - after careful consideration - determined that the October 1, 2008, unsolicited proposal from Microchip Technology and ON Semiconductor is inadequate in multiple respects, including value, conditionality and complexity, and is not in the best interests of Atmel's stockholders.
"Atmel's Board has determined that Microchip and ON's highly conditional proposal significantly undervalues Atmel and would deprive Atmel stockholders of the greater value that can be achieved through the continued execution of the Company's transformation plan," said David Sugishita, Chairman of Atmel's Board of Directors. Steven Laub, Atmel's President and Chief Executive Officer, commented, "Atmel's Board and management are committed to enhancing stockholder value. This commitment has driven the decisive actions we have taken to improve and restructure nearly every aspect of Atmel's operations. These initiatives are well underway and are just beginning to unlock the value inherent in Atmel. Indeed, our outstanding third quarter results announced today demonstrate the clear progress we are making. We will continue to take all appropriate steps, including selling or shutting down those businesses that do not meet our financial or strategic objectives, to ensure that we build on this momentum and realize Atmel's full potential."